Pringle 1,
I, too, jumped through all the present hoops to become a FI. However, I can't see an objection to changing the rules to allow suitable PPLs to instruct for a Private Pilot's Licence of whatever flavour or hue (EASA PPL, LAPL, NPPL or whatever). It's FAR more important, in my view, that FIs should be properly trained and tested to ensure they can instruct effectively than whether or not they've attained a certain academic standard at a higher level. This latter probably matters if you're doing the ab initio work on an integrated course, but then if you're doing that the school are going to need you to have a CPL, ME-IR etc so you can instruct to that level, too.
In the short-term at least, I can't see an influx of PPL-only-holding instructors having any effect on the FI market or more importantly on wages, the numbers entering the industry are going to be pretty small.
TheOddOne